World stocks rise as slowing China growth boosts stimulus prospects

Shares in Europe and Asia rose and the dollar gained after data showing China's economy grew last year at its slowest pace in 25 years prompted investors to anticipate more efforts to spur growth.

Styrofoam bull and pig figure stand on a counter on the trading floor at the stock exchange in Frankfurt, Germany January 7, 2016.

Oil prices rose after strong Chinese fuel demand halted a slide to 2003 lows triggered by the lifting of sanctions on Iran, while metals prices rose.

Concerns about Chinese authorities' ability to rebalance the slowing economy have rattled investors this year after a plunge in stock markets and the yuan currency raised concerns growth may be slowing more rapidly.

China's economy grew 6.9 percent last year, and 6.8 percent year-on-year in the fourth quarter, down from 6.9 percent in the third and the weakest pace since the first quarter of 2009, data showed.

Quarter-on-quarter, growth slipped to 1.6 percent in the last three months of 2015 from 1.8 percent in the third.

In a sign of slower growth to come, other data showed retail sales, industrial output and fixed-asset investment last month all came in below the expectations of analysts polled by Reuters.

European shares opened higher, led by miners after metals prices rose following the Chinese data.

The pan-European FTSEurofirst 300 index rose 1.5 percent. The STOXX Europe 600 Basic Resources index, which includes miners, added 4.1 percent.

The dollar gained against the safe-haven Japanese yen in anticipation of further action by Beijing, possibly as soon as next month.

The U.S. currency gained 0.4 percent 117.76 yen while the euro fell 0.1 percent to $1.0887. The Australian dollar, whose fortunes are closely linked to China, a major market for Australia, rose 0.6 percent to $0.603.